A multilateral trading facility (MTF) is a multilateral system which can be operated both by a regulated market or an investment firm. MTFs provide similar services to regulated markets but do not have the same level of obligations or regulation as regulated markets.

As operating an MTF in the UK is a ‘regulated activity’ (See STSM123080) any firm wishing to do so must be authorised by the Financial Conduct Authority (FCA) to do so. As with regulated markets, recognised investment exchanges (RIE) do not need to be separately authorised to operate an MTF. All REIs which operate an MTF in the UK must also operate a regulated market.

MTFs operate under Title II of the Markets in Financial Instruments Directive (MiFID).

There are over 70 MTFs operating in the UK. These include:

The Alternative Investment Market (AIM) - operated by the London Stock Exchange,